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As per the latest NHB Residex news, there is an increase in prices for smaller units of Tier II type cities as compared to Tier I cities. An initiative of the National Housing Bank – NHB Residex, the report explains that the residential units sized usually between 60-100 sq m in Tier II cities have witnessed the maximum price increase in the last quarter of the year. Vijayawada, Vishakhapatnam, Bhubaneshwar, etc. are cities studied among 50 cities of India.

Vijayawada is among the top five cities, which has seen an annualized price rise in the range of 8-10 per cent in the (ready to occupy) residential real estate property market.

Vijayawada is also known as the "City of Victory" is located on the banks of the Krishna River, is about 257 kilometres from Hyderabad. In recent times, the city is witnessing a high rate of growth in all its economic sectors including commercial and industrial sectors.

1.Residential Real Estate Property in Vijayawada

The current residential Real Estate property segment in Vijayawada is growing both in terms of quality and quantity. The government’s emphasis and developmental policies on real estate constructions and infrastructure have been the main attributes for the speedy development of Vijayawada. The city is rapidly adopting new concepts in real estate constructions, like as residential townships, in which all modern day facilities are provided- Gymnasium, swimming pools, clubhouse, tennis courts and much more in its own boundary, at very affordable price.

The governmental organization is also taking initiatives in some areas to build strong and high-quality houses as the old houses are of low quality. The Vijayawada Development Authority Guntur Tenali Mangalagiri (VGTM-UDA) plans to build more than 76,000 houses in Vijayawada and Tenali under the Rajiv Swagruha scheme. The UDA will also step to facilitate the development of a Special Economic Zone for Information Technology (SEZ) for employment generation.

2.Commercial Real Estate Property in Vijayawada

Vijayawada real estate property market has emerged as one of the most attractive investment destinations among Tier-II cities in India. With the type of capital floating in the market, investors have a strong idea with regard to Vijayawada to become the financial capital of Andhra Pradesh, in the coming years. As the government has relaxed the rules for FDI in the Indian real estate market and SEBI has given the assent for real estate mutual fund investments, the Vijayawada real estate market has seen a lot of stability.

With large investments flowing freely in Vijayawada city, the property sector has eventually become a seller’s market, leading to unprecedented price surges in most of its projects. It has seen a jump of about 30 percent over the last 2 years and is likely to see at least 40-60 percent increase over the next year and a half.

3.Retail market in Vijayawada

As such, Bejawada retail market is moving at a snail's pace but can be seen to reach the required pace in the future with the expected entry of brands like Shoppers Stop and Big Bazaar among the big names of shopping centers.

To give an advantage to the retail industry in Vijayawada, the City Municipal Corporation has proposed a multiplex to come over on an area of 2 acres of land near the Vidhya dharapuram bypass.

The project plans to serve as a hospitality and entertainment center, which will be executed on the basis of the public-private partnership. It is likely that the corporation will obtain 25% financing from the Center to implement the plans for the proposed center, which will involve an investment of Rs 40 crore. Big Bazaar has already rented an open site and started construction on Bandar Road. Shoppers Stop and Lifestyle are looking for suitable spaces along the city’s Ring Road.

These upcoming mega shopping centers are definitely going to give an impetus to improve the overall retail profile of Vijayawada and contribute to making it a modern city.

4.Upcoming Real Estate Projects in Vijayawada

IT Park: There is an IT park in the pipeline for Vijayawada city. The project will emerge at the 32-acre site at Kesarapalli across from Gannavaram Airport. Software Park: The District Administration is considering the construction of a software park in the whole land belonging to the Polytechnic College of the Government and ITI in the city.

Township: A notable project like Vigneshwara Enclave and Sri Akshita Oaks, are among the most exclusive real estate residential projects in Vijayawada. Also with an investment of Rs 650 crore, the municipality proposes to include approximately 4.6 million square feet of a residential and commercial complex. It is to connect the Guntur road located 12 km from Vijayawada.

The corridor between Hyderabad-Vijayawada: The state government has proposed building a high-speed corridor that will reduce the distance between Hyderabad and Vijayawada to just 2 hours. It is estimated that the project will cost 3,000 rupees.

Conclusion:

The government of Andhra Pradesh wants to build a Vijayawada city on the lines of Singapore. It has better road connectivity through its bridges, flyovers and NH5 & NH9 connected with other major cities of Telangana and AP. Biggest Railway junction of status A1, an International airport, biggest bus station in Asia and sufficient water supplies all round the year. All these factors have made Vijayawada as one of the favorites and top real estate investment destination for both locals and NRIs.

Proppick has an efficient team in the Vijayawada area to help you invest in real estate wisely.

The Thailand economy has shown good results in the last two and a half years, after its flood tragedy and different political upheavals. After attaining political stability, the Tourism and IT sectors have been the main areas which have brought back the Thai economy on its track.

In the last one and a half year, a lot of overseas investment had been pumped into the commercial and residential real estate market of Thailand, with the major contribution in cities like Bangkok, Pattaya, Jomtien, Wongamat, etc.

Why the Pattaya Real Estate Market better than the Bangkok?

In this article, we will quickly take a look into, why in present scenario Pattaya is a better option for real estate investment (especially in condo properties) than into the Bangkok real estate market.

Pattaya Realty Market

Currently, many of the condominiums (condo) for sale in Pattaya are affordable re-sale units, under the developer's price tags and current market value. Oftenly, these units have been sold at much lower rates than the developer can offer directly in a new project of a condo in Pattaya. On an average, it is seen that the per square foot rates on Pattaya condos are much cheaper than in Bangkok. Recently, there has been an influx of discounted apartments and cheap condominiums for sale in the Pattaya real estate market.

Why are Pattaya condos cheaper compared to property in Bangkok?

There have been some important key factors for this, such as - a fragile global economy, low foreign exchange rates, the growing strength of Thai Baht and an excess availability of condominiums in surrounding suburbs.

A large number of Russian expats had owned condos in Thailand, majorly in Pattaya city. The collapse of the Russian Ruble was the beginning of the so-called bonanza of the cheap fire sale of condos, where you can buy a resale condominium in the Pattaya under the real estate property developer's rates for the first time. This was possible because the Russian currency is reduced to the half the previous value and therefore they (Russian condo owners) nearly doubled the value of their condos, that allows them to sell cheaply and convert the strong Thai Baht back to the Ruble, thus earning a profit and making money back to the exchange rate. In fact, it makes more sense for them to sell now than to wait for the real estate market in Pattaya to recover.

Another mitigating factor, which as a general rule in any form of business economics, comes down to – ‘supply and demand rule’ and when supply exceeds demand, prices of the product fall. This will determine the current market value and the price what you will eventually pay to the supplier. For example, an over supply of condominiums for sale in Pattaya means more apartments in the market. There will be more competition between the owners, to sell or rent, combining this with the present uncertainty of the global economy, which leads to fewer people in the buying process. This ultimately pushes the owners in dropping its price tags to get the sale done.

Over the past two years, since the start of the Russian Ruble collapse in mid-2014, Pattaya sees a cheap real estate sale and the people who are with cash, earned a fantastic opportunity to take the maximum advantage of the situation with very discounted properties. In some cases, investors are able to purchase a new condo in Pattaya for almost half the original market value.

With the pristine beauty of the city’s beaches, better infrastructure, growing hospitality & education sector, expanding transportation facilities and low cost living. Pattaya is attracting many overseas and local investors in its real estate property market.

Why don’t we see a similar scenario in the Bangkok Real Estate Market?

Most of the real estate in Bangkok is owned by wealthy Thai citizens and they are in no hurry to sell for a loss! Many Thai people purchase property in Bangkok for rent and have a long term investment strategy while comparing to Pattaya most of the cheap apartments for sale are foreign national owned - holiday homes. This is because the main destination in Thailand for foreign tourists was Pattaya and other sea-side holiday resorts where currency fluctuations play an important role in accepting a low/ cheap offer by a foreigner.

So how long do we think these heavily reduced condominiums in Pattaya will last? Although there is no immediate sign of a recovery or overnight monetary solution for the global financial markets, but we are already beginning to see a drop in the sale of these cheap condominiums at low prices due to the fact that Russian buyers have bought in many units.

If you compare condo prices with homes for sale in Pattaya, you will not see the same picture you make with the Pattaya condos because most of the foreign real estate investment in Pattaya was directed to low-lying condos near the beach and complex holiday style resorts.

Conclusion

So the best advice we can offer is, if you are looking to buy a property in Pattaya city, be prepared to do your due diligence. Take efforts to hire a trusted real estate consultant, look for a well-built condominium development projects, like Amigo Grandeur Condominium, which is having all local amenities and is close to shopping and recreational areas, beaches, etc.

Location of any Condo definitely plays an important role in any real estate market, central city locations have often increased demand in the area and require higher prices due to limited availability. We have seen many condominiums for sale in central Pattaya retain their value and, if anything, prices have steadily increased, this is also true with seafront properties, unique apartments overlooking the sea and new luxury condominium projects developed by market-trusted builders and developers.